MARKET ACTIVITY/TRADING NOTES FOR DAY ENDING FRIDAY, JANUARY 16, 1998 (6)
STOCK MARKET ACTIVITY / KERM'S KOMMENTARY
Commenting on yesterdays activity on the TSE, Josef Schachter, at Calgary-based Schachter Asset Management said "Toronto still has a long way to go but the pressure is coming off," and "The resource sector which has been under a lot of attack is starting to see some light." Reminded me of the analyst who said he hoped the light in the tunnel wasn't that of an oncoming train.
The jury is still out in regards to the light, but we had one heck of a good day to talk about. Bargan hunters were very active yesterday. A total of 16.9 million shares were traded in compannies comprising the oil & gas composite index. It was the 5th largest trading day in the past three months. More importantly, the gain was the best day the oils have seen in the past three months. Based upon the trading volume and uptick, institutions may be jumping in to position themselves in the oils. I was beginning to think the big guys were slower than a herd of turtles stampeding through peanut butter. Another observation, volume was concentrated in the group which I have been saying would lead any upward movement. Do I think the rally in oils will continue? One thing is certain, not at the rate we witnessed yesterday.
INDEXES
The Toronto Stock Exchange 300 Composite Index finished up 1.4% or 91.67 to 6418.24. In comparison, the Oil & Gas Composite doubled the increase of the TSE 300, rising 2.8% or 161.86 to 6018.24. Among the sub components, the Integrated Oil Index gained 2.1% or 171.12 to 8356.56. The Oil & Gas Producers Index climbed 3.2% or 163.35 to 5308.47. The Oil & Gas Services Index rose 1.7% or 2474.56.
For the week, the TSE300 gained 2.3% or 146.25 points. In comparison, the Oil & Gas Composite index gained 5.9% or 335.69 points. The Integrated Oils gained 4.1% or 328.87 points. The big gainer was the Oil & Gas Producers, up 7.3% or 362.16 points. The Oil and Gas Services Index gained just 0.9% or 19.70 points. Trading volume for companies comprising the Oil & Gas Composite Index was heavy this week, up 41.5% or 140.7 million from the previous week.
INDEX CHARTS
TSE 300.......... canoe.quote.com
O&G Composite. chart.canada-stockwatch.com
Integrated Oil's.... chart.canada-stockwatch.com
O&G Producers.. chart.canada-stockwatch.com
O&G Services..... chart.canada-stockwatch.com
STOCK EXCHANGE INFORMATION
As a result of the INTERNATIONAL PETROLEUM CORP. and Sands Petroleum AB merger new Sands Series B shares, represented by Global Depositary Shares ("GDS"), have been issued to IPC shareholders on January 15, 1998 on the basis of 1 GDS for every 1.15 IPC shares.
The GDS's will commence trading on the Toronto Stock Exchange on January 19, 1998 under the symbol "SPB" and on NASDAQ on January 20, 1998 under the symbol "SANPY". Correspondingly, IPC shares will be voluntarily delisted.
T&H RESOURCES LTD. announced that The Toronto Stock Exchange has granted an extension from February 6, 1998 until May 14, 1998 to meet the original listing requirements of the T.S.E.
T&H is actively sourcing projects of merit in order to comply with the T.S.E. listing requirements.
MOST ACTIVES
Among the top 50 most active traded issues on the Toronto Stock Exchange were Renaissance Energy, Tarragon Oil & Gas, Petro-Canada, Talisman Energy, Canadian Occidental Petroleum, Canadian Natural Rersources and Poco Petroleums
Net gainers included Renaissance Energy $2.10 to $28.50, Talisman Energy $1.85 to $38.70, Remington Energy $1.70 to $21.00, Canadian Natural Resources $1.50 to $28.00, Imperial Oil $1.40 to $84.80, Canadian Occidental Petroleum $1.20 to $28.50, Chieftain International $1.00 to $27.50 and Rio Alto Exploration $1.00 to $11.75.
Percentage gainers included TUSK Energy 19.6% to $1.10, International Petroleum 15.5% to $6.35, K2 Energy 14.3% to $1.60, Rio Alto Exploration 9.3% to $11.75, Remington Energy 8.8% to $21.00 and Renaissance Energy 8.0% to $28.50.
On the downside, Morrison Middlefield fell $0.75 to $8.25, Seven Seas Petroleum $0.50 to $18.30 and Paramount Resources $0.35 to $14.50.
Percentage losers included Morrison Middlefield 8.3% to $8.25, Gentry Resources 6.1% to $1.07, TransGlobe Energy 4.8% to $2.00, Benson Petroleum 3.7% to $1.30 and Bellator Exploration 3.6% to $1.35.
No new 52-week highs.
Cabre Exploration, Morrison Middlefield, Ocelot Energy B and Ranger Oil reached new 52-week lows.
In review of oil & gas service issues, as well as those with close ties to the industry, none were listed among the top 50 most active traded issues on the TSE.
Net gainers included Mullen Transportation $2.00 to $22.00, Dreco Energy Services $1.50 to $40.50, CE Franklin $1.05 to $11.50 and Precision Drilling $1.00 to $26.50.
Percentage gainers included Computer Modeling 12.0% to $1.40, Bromley Marr 11.8% to $1.23, CE Franklin 10.0% to $11.50, Mullen Transportation 10.0% to $22.00 and Ryan Energy 8.3% to $8.45.
On the downside, Computalog fell $0.45 to $19.55
There were no percentage losers.
Companies reaching new 52-week highs included pason Systems.
No new 52-week lows.
Over on the Alberta Stock Exchange, Jerez Energy, Colt Energy, Bearcat Explorations, NTI Resources, Red Sea Oil, Trego Energy, Calahoo Petrroleum, First Star Energy, Bolt Energy, Esker Resources, Commonwealth Energy and Storm Energy were amonog the top 30 most active traded issues.
Net gainers included Solid Resources $0.75 to $7.25, Derrick Energy $0.25 to $1.50, Kensington Energy $0.25 to $1.25, BriAlto Energy $0.24 to $1.25, Canadian Talon Resources $0.19 to $0.70, AltaQuest Energy $0.15 to $2.40, Belfast Petroleum $0.15 to $2.45, Jerez Energy $0.14 to $0.50, Parkcrest Exploration $0.12 to $1.53, Doreal Energy $0.10 to $1.35, Carpatsky Petroleum $0.10 to $0.30 and Palmetto Resources $0.10 to $1.10.
Percentage gainers included Carpatsky Petroleum 50.0% to $0.30, Jerez Energy 38.9% to $0.50, Canadian Talon Resources 37.3% to $0.70, Kensington Energy 25.0% to $1.25, BriAlto Energy 23.8% to $1.25, Derrick Energy 20.0% to $1.50, Gold Star Energy 19.0% to $0.50, Endeavor Resources 16.7% to $0.35 and Cubacan Exploration 13.6% to $0.50.
On the downside, Pason Systems fell $0.30 to $6.50, Corker Resources $0.25 to $0.50, Red Sea Oil $0.19 to $2.85, Sunburst O & G $0.15 to $1.10, Brittany Energy $0.10 to $0.40 and Telford Resource $0.10 to $0.85.
Percentage losers included Corker Resources 33.3% to $0.50, Brittany Energy 20.0% to $0.40, Sunburst O & G 12.0% to $1.10, Para-Tech Energy 11.8% to $0.30 and Telford Resource 10.5% to $0.85.
No new 52-week highs.
New 52-week lows were obtained by Corker Resources, Enterprise Developement and WWB O&G.
An excellent summary of most actives covering all four of the Canadian Stock Exchanges can be found at quote.yahoo.com
KERM'S TOP 21 - SPEC 15 - SERV 9 COMPANIES IN THE NEWS
See Terra Nova and Petro-Canada feature articles. Also check out analyst comments further in content.
KERM'S WATCHLIST OF COMPANIES IN THE NEWS
ARCHER RESOURCES LTD. announced it has completed the acquisition of further interests in its Mannville core area for $3.55 million. The acquisition includes 6.4 bcf of proved reserves, 2.1 mmcf per day of net production and various interests in 82 sections of land. Through acquisition, exploration and recompletion activities Archer has raised its production in the Mannville area to 13 mmcf per day from 6.8 mmcf per day over the past year, while reducing operating costs to $0.37 per mcf from $0.43 per mcf.
Archer has also completed a swap transaction that has low working interest, non-operated assets in the Cache area to an area operator company. In return, Archer has received incremental interests in several company operated producing assets and land in the Mannville-Whitford Colony trend, where Archer's down hole water injection technology has been successfully deployed.
OTHER COMPANIES IN THE NEWS
K2 ENERGY announced its recent purchase of 454 kilometres of modern trade seismic data which Susan Eaton, Vice-President of Exploration, says will advance K2's understanding of their foothills play during the next few months.
K2 purchased 454 kilometres of 24-fold vibroseis seismic data acquired by BFR Geophysical in 1981 and which extends over K2's three exploration blocks in the Blackfeet Reserve (see attached map). Within the Blackfeet Indian Reserve, K2 holds 200,000 acres of exploration lands in the disturbed belt and 90,000 acres of exploration lands in the plains. K2's exploration commitment to the Blackfeet Indians is 15 wells during the next five years, with no relinquishments for 13 years.
Included in this data purchase are two lines that provide templates of significant Mississippian gas fields on trend with K2's exploration acreage: to the south of the Reserve in Montana, Blackleaf Canyon (55 BCF in place); to the north of the Reserve in Canada, Waterton (4.6 TCF in place) and Pincher Creek (1.6 TCF in Place). The Geological Survey of Canada estimates gas reserves of 11 TCF in Montana's disturbed belt. According to Eaton, the U.S. Department of Energy estimates a 50-50 chance of finding between 6 to 7 TCF of gas in Montana's disturbed belt.
The acquisition of 454 kilometres of foothills data represents -- in today's dollars -- a value of approximately $3.3 million CDN. K2 is currently reprocessing this new vibroseis 24-fold data set, as well as an additional 442 kilometres of six-fold dynamite data, also located in the Reserve.
This new 24-fold seismic data base will infill the seismic grid that K2 has already purchased in the Reserve, and will preclude the company from having to shoot any regional foothills lines this winter, says Eaton. K2's current data base consists of about 2,160 kilometres of one- and six-fold data in addition to the 454 kilometres on new 24-fold vibroseis.
K2 is currently seeking a partner or partners to share the risk and costs of exploration in the Blackfeet Indian Reserve. Seven major oil and gas companies, both American- and Canadian-based, have signed confidentiality agreements with K2 which may lead to the signing of a farm-in partner or partners during the next few months.
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